Icap’s traditional broking business is “suffering heavily”, according to chief executive Michael Spencer, though a strong performance from the group’s post-trade business helped to put some shine on a market he described as “relatively fragile” in the broker’s first half.

Icap reported Wednesday a 15% year-on-year fall in its revenues to £620 million for the six months ended September 30, 2014. Pre-tax profits fell by 34% to £100 million.

However, the broker also said that 83% of its operating profits in the period came from its post-trade risk and information and electronic businesses, up from 69% in its year ended March 31, 2014. Spencer described that growth on a media call as a "remarkable transformation" and said it reflected the firm's "much more ruthless focus on higher-growth businesses".

Revenues in its post-trade risk and information division rose 12% to £108 million, driven largely by a 46% increase in TriOptima's revenues. Spencer noted that there had been particular growth in TriOptima’s triResolve portfolio reconciliation business, which had doubled its number of customers since March, to over 1,000 firms.

Revenues in its global broking business fell 15% to £390 million during the period, which it attributed to "historically low interest rates and FX volatility, flat yield curves, and bank deleveraging". Spencer said the voice broking business was "suffering heavily from a retrenchment in dealer risk appetite and... [we] don’t see that outlook improving significantly in the short term".

Spencer insisted that the business – in which the firm brokers complex derivatives deals between investment banks – was "not about to become extinct". He added that "its costs need to be managed well and... lower growth businesses exited". Icap said today it was also combining its shipping brokerage with another broker Howe Robinson. Spencer did not give further details on the combination but said it would be operational in the second quarter of next year.

The company's revenues from electronic markets, including its FX EBS and fixed income BrokerTec platforms, fell 5% to £122 million. Icap said the revenue fall reflected "historically low FX volatility in G3 currencies and a strong performance by BrokerTec in the prior year".

Spencer said the broker's cost-cutting programme, expected to deliver annual savings of £60 million, was "substantially complete" and said there would not be "further material reductions in headcount".

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Icap’s total broking headcount has reduced from 2,118 at March 2014 to 1,793 today, an Icap spokeswoman said. Total headcount has reduced from just under 5,000 to 4,586.

Activity in the FX market has picked up substantially in recent weeks, however, with volumes on EBS reaching its busiest day for three years on October 31, with traded spot volume of $250 billion. The trigger was the Bank of Japan’s announcement it would expand quantitative easing.

Spencer said that a £12 million investment in EBS Direct, a relationship-based trading platform that operates alongside the core platform, had resulted in "exceptional volume growth". In particular he noted a tenfold increase in electronic renminbi volumes over the past year.

Spencer said: “Our first half results reflect a market environment that has remained relatively fragile; despite this, we are cautiously optimistic that we have started to see some welcome signs of activity and more positive sentiment returning in recent weeks."